Journal ArticleDOI
Optimal technology choice and investment timing: A stochastic model of industrial cogeneration vs. heat-only production
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TLDR
In this article, the authors developed an economic model that explains the decision-making problem under uncertainty of an industrial firm that wants to invest in a process technology, where the decision is between making an irreversible investment in a combined heat-and-power production (cogeneration) system, or investing in a conventional heat-only generation system (steam boiler) and to purchase all electricity from the grid.About:
This article is published in Energy Economics.The article was published on 2007-07-01. It has received 90 citations till now. The article focuses on the topics: Return on investment & Economic model.read more
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MES (multi-energy systems): An overview of concepts and evaluation models
TL;DR: In this paper, the authors provide a comprehensive and critical overview of the latest models and assessment techniques that are currently available to analyze MES and in particular DMG systems, including for instance energy hubs, microgrids, and VPPs (virtual power plants), as well as various approaches and criteria for energy, environmental, and technoeconomic assessment.
Risk-Aversion and Willingness to Pay For Energy Saving Measures in Residential Buildings
TL;DR: In this article, the authors used a choice experiment to evaluate the consumers' willingness to pay for energy-saving measures in Switzerland's residential buildings, such as air renewal (ventilation) systems and insulation of windows and facades.
Journal ArticleDOI
Review of tri-generation technologies: Design evaluation, optimization, decision-making, and selection approach
TL;DR: In this paper, different types of trigeneration systems are classified according to the prime mover, size and energy sequence usage, and a leveled selection procedure is subsequently listed in consecutive sections.
Journal ArticleDOI
Investment in new power generation under uncertainty: Benefits of CHP vs. condensing plants in a copula-based analysis☆
TL;DR: In this paper, the authors apply a spread-based real options approach to analyze the decision-making problem of an investor who has the choice between an irreversible investment in a condensing power plant without heat utilization and a plant with combined heat-and-power (CHP) generation.
Posted Content
Development of Cogeneration in Germany: A Dynamic Portfolio Analysis Based on the New Regulatory Framework
TL;DR: In this article, the authors tackle the political CHP target stipulated by the German government, and aim at identifying which CHP technologies are most likely to be installed in the near future.
References
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Book
Investment Under Uncertainty
Avinash Dixit,Robert S. Pindyck +1 more
TL;DR: In this article, Dixit and Pindyck provide the first detailed exposition of a new theoretical approach to the capital investment decisions of firms, stressing the irreversibility of most investment decisions, and the ongoing uncertainty of the economic environment in which these decisions are made.
Book
Risk, Uncertainty and Profit
TL;DR: In Risk, Uncertainty and Profit, Frank Knight explored the riddle of profitability in a competitive market profit should not be possible under competitive conditions, as the entry of new entrepreneurs would drive prices down and nullify margins, however evidence abounds of competitive yet profitable markets as mentioned in this paper.
Book
Theory of rational option pricing
TL;DR: In this paper, the authors deduced a set of restrictions on option pricing formulas from the assumption that investors prefer more to less, which are necessary conditions for a formula to be consistent with a rational pricing theory.
Book
Real Options: Managerial Flexibility and Strategy in Resource Allocation
TL;DR: Real Options as mentioned in this paper reviews current techniques of capital budgeting and details an approach (based on the pricing of options) that provides a means of quantifying the elusive elements of managerial flexibility in the face of unexpected changes in the market.
Journal ArticleDOI
Investment and the Valuation of Firms When There is an Option to Shut Down
TL;DR: In this paper, the authors developed and studied a methodology for valuing risky investment projects, where there is an option to temporarily and costlessly shut down production (with no effect on future prices and costs) whenever variable costs exceed operating revenues.